Taxing tax return - argh

[barbapapa]

During the past tax year, I worked 2 months in the Uk and 7 months in NZ as a recent immigrant. If i answer "no" in question 17 (Did you receive any overseas incoem?) of the IR3 2009 Individual tax return form:

1) will I get in trouble?
2) will I loose on potential extra tax refund?

Since my tax affairs are in order in the UK (well still waitign for a refund but that's another story), why would it matter to NZ tax officials?!

OK if it does , which form should I staple to IR3 form - the one I have sent to the tax people in UK?!

[Janey]

I maybe wrong and will watch this with interest but isn't it recipricol if you have been taxed in the UK for when you were a tax resident there then this will not worry NZ at least thats how I was going to treat it!

[IanW99]

During the past tax year, I worked 2 months in the Uk and 7 months in NZ as a recent immigrant. If i answer "no" in question 17 (Did you receive any overseas incoem?) of the IR3 2009 Individual tax return form:

1) will I get in trouble?
2) will I loose on potential extra tax refund?

Since my tax affairs are in order in the UK (well still waitign for a refund but that's another story), why would it matter to NZ tax officials?!

OK if it does , which form should I staple to IR3 form - the one I have sent to the tax people in UK?!

If you have been in NZ for more than 6 months then you will be considered resident for tax purposes, so yes you will need to include any overseas income as IRD want to tax you on your world-wide income.

For 1) If they catch you, then yes you will get into trouble.
Sorry can't answer 2? You will of course get a tax refund if one is due.

As there is a double taxation agreement with the UK, any tax that you have paid in the UK will be taken off what you should have paid in NZ i.e. so you don't end up being taxed twice on the same amount.

You should staple to the form whatever evidence you have of income and tax paid e.g. P45 (IIRC).

Ian

[incredible hulse]

I have just completed a tax return for yr 2006 and was in a similar situation - worked in NZ only a month though. I rang the help line and they told me that I didn't need to declare my UK earnings and stated that question only referred to returning kiwis. This didn't seem correct to me so I followed their direction but put a covering letter stating this and also declaring that I had UK earnings.

I received a full refund on the money I had calculated and they did not request any info. on my UK earnings

[IanW99]

I have just completed a tax return for yr 2006 and was in a similar situation - worked in NZ only a month though. I rang the help line and they told me that I didn't need to declare my UK earnings and stated that question only referred to returning kiwis. This didn't seem correct to me so I followed their direction but put a covering letter stating this and also declaring that I had UK earnings.

I received a full refund on the money I had calculated and they did not request any info. on my UK earnings

From the IR3 Guide for 2006

Question 17 Overseas income
If you received income from, or while you were overseas between 1 April 2005 and 31 March 2006, show it at Question 17 in New Zealand dollars.

And for 2009

Question 17 Overseas income
If you received income from, or while you were overseas, between 1 April 2008 and 31 March 2009, show it at Question 17 in New Zealand dollars. Transitional residents must also include any foreign employment or service income at this question.

So it's possible that your advice was specific for 2006?

Ian

[Jo Jo]

During the past tax year, I worked 2 months in the Uk and 7 months in NZ as a recent immigrant.

Did you do the two months' work in the UK after you moved to NZ or before? If it was before you moved to NZ then you don't need to declare it.

If it was after you moved to NZ then you do need to declare it, and attach the evidence to show that it has been taxed already, e.g. your P45 if you were an employee.

From the Inland Revenue's website:

In your first New Zealand individual tax return as a tax resident, you must include your worldwide income from all sources from the date you arrived in New Zealand.

(Highlighting mine)

[incredible hulse]

From the IR3 Guide for 2006


And for 2009


So it's possible that your advice was specific for 2006?

Ian

I think the difference is due to the 4 year exemption rule starting after 31/3/2006. I still think the advise given by IRD was incorrect but followed their direction and got the refund so not too concerned !

[IanW99]

I think the difference is due to the 4 year exemption rule starting after 31/3/2006. I still think the advise given by IRD was incorrect but followed their direction and got the refund so not too concerned !

I agree with you...

For the 2006 case, from the IR3G

If you became a New Zealand tax resident during the year 1 April 2005 to 31 March 2006, you have to complete an IR 3 declaring your worldwide income. Make a list showing your income earned as a tax resident and as a non-resident. Staple this list to the top of page 3 of your return.

But they have since changed this to only needing information regarding income since becoming tax resident, so whilst the guide says you did, they know that you don't.

Ian

[bob_the_engineer]

I've dealt with the IRD, the UK inland revenue the vat man and the gst man.

your not in the UK now,,,, the tax people here in NZ are fantastic just phone them, unlike the UK where rules a blindly applied, here they will actual help you out and are quite willing to give you great advice.

my gut feeling is they are interested in overseas income that hasn't been taxed as it was earned while you were in NZ, thats not your situation.

as i said call the tax dept they are really nice, easy to deal with and helpful.

Bob

[bob_the_engineer]

Just to add to that, i got a phone call from the tax dept here in NZ, they actual called me to prompt me to fill in a form because they thought i was entilted to a small refund of a couple of hundred dollars.

can i say that again the tax man rang me on my mobile and said, fill this form in i think we owe you money!

never happened in the UK, i was so pleased, and since they let me off with a small charge because i put a gst return in a week late, well i let them keep the refund, as i said nice people imagine the VAT man cutting you some slack!

Bob